The Asian Development Bank in a report today raised its growth forecast for Asia. The report included a forecast that stated emerging East Asian nations would grow 8.1%, an increase from the 7.7% growth forecast that was released in April. This upbeat report boosted Investor confidence, allowing markets to rebound.

While the MSCI Asia Pacific index fell 0.8% to 115, the MSCI Asia Apex 50 gained 0.9% to close at 728.

The Japanese NIKKEI 225 closed at 9,300 as it fell 1.1%. After being closed for Marine Day, investors responded to Wall Street’s poor showing on Friday as well as losses by Asian indices on Monday. The fall was led by technology, which was a response to dismal earnings reports for IBM and Texas Instruments.

In Hong Kong, the Hang Seng jumped 0.9%.

China’s Shanghai Composite posted the greatest gains on the day among the major Asian indices. The index climbed 2.2%. This occurred amidst investor confidence that Chinese policy makers will not have to carry out fiscal tightening.

In India, the BSE Sensex 30 slid 0.3%.

In Australia, the S&P/ASX 200 gained 1%. Financial stocks boosted the Australian index including ANZ bank which was up 2.0% and Westpac Banking which rose 1.2%. Aquarius Platinum climbed almost 14% to rally from Monday’s 25% slide.

In Seoul, the KRX 100 rose 0.3% to 3,636.

On currencies, the yen fell 0.29% against the dollar. The rupee and rupiah also posted losses against the dollar while the Aussie Dollar and Kiwi strengthened against the dollar. In addition, the renminbi stayed flat.

Sovereign yields in the region increased (except for Chinese and Malaysian) as investors reallocate to riskier assets amid confidence in the regional growth prospects.